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New legislation restricts access to the reduced company tax rate

Michael Carruthers | 19/10/17 12:18

Legislation restricting access to the small business company tax rate reduction entered Parliament yesterday. Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 limits access to the 27.5% company tax rate by replacing the ‘carrying on a business test’ with a ‘passive income test’. Under the new rules, to access the reduced company tax rate, 80% or less of the entity’s assessable income must be passive in nature.
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Company Tax

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